Scotland’s decline in renewable heat demand last year was the first since records began in 2008.
A new report from the Scottish Government shows the country generated an estimated 5% of its non-electrical heat demand from renewable sources last year, slightly down from 5.4% in 2015.
It has now set a target to generate 11% of its non-electrical heat from renewable sources by 2020.
In 2016 there was an estimated 1,710GW of renewable heat capacity across the nation, up 13% from 2015.
However, this produced an estimated 3,752GWh of useful low carbon heat, 11% less than the previous year.
The report suggests this reduction in output was mainly as a result of the Tullis Russell paper mill in Fife closing, which was a significant user of green heat.
The government says without this, clean heating would have increased.
It aims to support 12 local authorities in developing Local Heat & Energy Efficiency Strategies and provide around £26 million to 10 renewable heat demonstration projects.